As the summer lull persists in the crypto market, several key factors and metrics suggest a potential shift could be on the horizon for September. With Bitcoin trading sideways, some analysts are predicting a strong upward movement in the fourth quarter. Adding to the excitement, there are rumors that China may soon unban cryptocurrency, hinting at significant developments in the latter half of the year.
China’s Potential Crypto Unban
One of the most exciting possibilities is that China might soon lift its ban on cryptocurrency trading. Tron founder Justin Sun recently hinted in a tweet that China could allow its users to start trading and mining in crypto once again.
Earlier this year, China permitted crypto-related activities in Hong Kong, including the launch of ETFs and retail trading. If these permissions are extended to the mainland, it could inject substantial capital into the crypto market, bolstering the bullish outlook for the rest of the year.
Bitcoin Stagnation: Calm Before the Storm?
While the crypto market may seem stagnant, with Bitcoin mostly trading sideways, some investors see this as the “boring zone” where little appears to happen in the short term. However, there are several positive indicators worth noting. For instance, the stock market, particularly the S&P 500, has shown a V-shaped recovery on its daily chart, suggesting potential strength ahead. The Relative Strength Index (RSI) for the S&P 500 isn’t in the overbought zone yet, which is another encouraging sign.
Read more: 75% of Bitcoin Unmoved for Over 6 Months
A Bullish Sign for Bitcoin
The US Dollar Index (DXY) is showing signs of weakening, which typically benefits riskier assets like Bitcoin. The inverse correlation between Bitcoin and the DXY suggests that as the dollar weakens, Bitcoin could gain momentum.
Rising Institutional Interest
Another crucial factor is the growing interest from traditional financial institutions in Bitcoin and other cryptocurrencies. Recent SEC filings indicate that Morgan Stanley and Goldman Sachs have significantly increased their holdings in Bitcoin-related funds, including the BlackRock Bitcoin ETF. This rising institutional interest highlights increasing confidence in Bitcoin’s future.
Cre: coinpedia
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
